The last thing anyone wants is a letter from the IRS. For small business owners, though, it's not just a nuisance; communication from the IRS can bring with it very real stress, anxiety, and disruption to your daily operations. Fortunately, being aware of and understanding what might prompt an audit sets you up with a better chance of avoiding unnecessary attention in the first place. If you're a small business owner in D.C. or the surrounding area, here's what you should know about the most common IRS red flags and how to steer clear of them.

As your business grows, it's essential to ensure that your business structure continues to align with your goals. Whether you're adding new products, changing ownership, or simply evolving, the structure of your business can have significant tax and operational implications. Let's explore some of the most common business structures—Hobby, Sole Proprietorship, LLC, S-Corporation, and C-Corporation—and what they mean for your company.

Owning your own business as a sole proprietor means you have an unparalleled level of freedom to operate it as you see fit while taking advantage of unique growth opportunities. With all that freedom, though, comes an equally significant amount of financial responsibility, particularly when tax season rolls around. With a basic understanding of critical tax forms, deductions, and codes, you can make tax time less stressful and more rewarding across the board.